By Will Fire
Johnson Outdoors Inc. grew sales and profit in the fiscal fourth quarter as supply chain challenges eased, particularly in the fishing business, even though the company’s inventories rose nearly 50%, which could leave the company vulnerable to a drop in demand.
The Racine, Wisconsin-based maker of outdoor recreation equipment reported earnings of $9.7 million for the three months ended September 30, compared to $6.9 million for the same period last year. Earnings were 95 cents a share compared to 68 cents a share.
Revenue rose 18% to $196.4 million. A 38% increase in fisheries sales, boosted by easing supply chain challenges, offset weakness in camping and watercraft recreation, the company said.
Inventories at September 30 increased to $248.6 million from $166.6 million in the prior year.
“The fiscal fourth quarter showed some easing in supply availability and we remain focused on evaluating options to address increased costs and supply chain efficiencies,” said Chief Executive Helen Johnson-Leipold.
It’s unclear how tightening economic conditions and rising inflation might affect consumer behavior, Ms Johnson-Leipold said.
Chief Financial Officer David Johnson said the company is monitoring demand and managing above-average inventories.
“While we have seen improvement in the supply chain for raw materials and purchased components, we expect that fiscal 2023 will experience some supply chain constraints on a regular basis and that our margins will continue to be impacted by inflationary pricing conditions,” said Mr. Johnson.
Write to Will Feuer at [email protected]